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Cars.com Reports Record Revenue but Declining Net Income

Cars.com Inc. has reported its financial results for the fourth quarter and full year ended December 31, 2025. The company achieved a record full-year revenue of $723 million, representing a 1% increase compared to the previous year's revenue of $719.2 million.

In terms of net income, there was a notable decrease. The net income for the fourth quarter of 2025 was $7.4 million, down 57% from the $17.3 million reported in the same period in 2024. For the full year, the net income was $20.1 million, a 58% decrease from the $48.2 million reported in 2024.

Adjusted net income also saw a decline, dropping 16% in the fourth quarter of 2025 compared to the same period in 2024. For the full year, adjusted net income was $108.1 million, representing a 6% decrease from the $114.9 million reported in the previous year.

Adjusted EBITDA for the fourth quarter was $54.9 million, a 1% decrease from the $55.5 million reported in the same period in 2024. However, for the full year, adjusted EBITDA increased by 1%, reaching $211.1 million compared to $209.7 million in 2024.

The company's average monthly unique visitors decreased by 15% quarter-over-quarter and 6% year-over-year. Likewise, traffic (visits) decreased by 11% quarter-over-quarter and 3% year-over-year.

Despite the challenging financial performance, the company repurchased 7.1 million shares for $86 million in 2025, retiring 9% of shares outstanding.

Looking ahead, the company expects first quarter 2026 revenue to be flat to up 1% year-over-year, with adjusted EBITDA margin expected to be between 26.0% and 27.0%. For the full year 2026, revenue is projected to be flat to up 2% year-over-year, with adjusted EBITDA margin expected to be between 29.0% and 30.0%.

Following these announcements, the company's shares moved -0.5%, and are now trading at a price of $11.97. For the full picture, make sure to review Cars.com's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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